Paringa Resources announced that the company has completed its initial mine development and coal seam access for the proposed Buck Creek No.2 mine in Illinois.

The company also added that the project will be of low-cost development, and access to the coal mine would be through a combination of boxcut and drifts for ventilation and transport.

The mine is a part of the Buck Creek Mining Complex which has over 1,200 coal seam intercepts, and will have a capacity of 3.8 million tons per annum coal operation.

Paringa president David Gay said: "The technical study for Buck Creek No.2 Mine has yielded extremely positive results after evaluating a number of development options.

"These results will now provide a strong platform to rapidly progress a more comprehensive Scoping Study for the project, which we plan to complete during the fourth quarter of 2015."

"The technical study has shown that the Buck Creek No.2 Mine has the potential to be a very low development cost project due to the shallow depth of the coal seam and ability to access the coal via a box cut and drift design."